Talkin’ bout Our Consignment System: How HTSS Is Creating A Revolution In Steel Supply

Maintaining sufficient supply levels in the steel industry can be expensive. It is costly to hold onto stock, especially at times like these when there is increased demand, and it can put quite a strain on infrastructure and balance sheets alike. It became clear to us that a solution had to be found which was affecting several of our clients, including some of the largest domestic appliance manufacturers and electronic contract firms in the world.

The solution, which they needed and we developed, ensures they hit zero across the board: zero rejects, shortages and inventory.
This means stock levels can always be kept and maintained at agreed levels, managed online, automated and best of all, customers only pay for what they use.

steel supply blogOnce a consignment of steel has been committed to be used, in the manufacturing of a product, that is when – and only when – an invoice is generated. We’ve found this has been a big help to clients who’ve struggled with cash flow during the lean years. Even as things improve, it helps to keep a tight rein on the essentials: money and stock.

How Does It Work?

Ensuring customers have what they need when they need, with no late deliveries (the steel we supply is all ex-stock on site), no purchase orders and a consistent cash flow positive balance takes some doing.

We first developed an early version of this system in when no one knew what the word Facebook or iPhone meant. With advances in the Internet, we are now able to deploy web based software almost as easily as you can get an email account.

Stock levels are set to agreed amounts (i.e. If two weeks stock held on site, replenishment would be within seven days of falling below target level). Once they fall below target, because the stock has been used and an invoice generated, we dispatch new stock. This then sits on site, at no cost to the customer, until it’s used. Special orders can be put through the system as well, which are guaranteed within 48 hours.

We can also do bespoke programs, adapt the software to customers unique needs, and show your team how to generate reports according to what you need. Our operational audits have helped clients in the past get even more from our consignment system.

One customer, one of the largest electronic contract manufacturer’s in the world, has been with us for a significant amount of time. When they started using this system they were delighted at how much it did, compared to how much time they used to spend doing the same tasks manually. Managing supply levels suddenly became significantly easier.

Could you benefit from steel supply levels being easier to manage? If this sounds like something you could would like to discuss further, just give us a call on 44 (0) 1744 818 767 or email at sales@hitechsteels.co.uk